12:11 PM EST, 12/27/2024 (MT Newswires) -- BioNTech (BNTX) on Friday announced separate agreements with the US National Institutes of Health and the University of Pennsylvania to settle royalty claims related to sales of its COVID-19 vaccine co-developed with pharmaceutical giant Pfizer ( PFE ) .

Under the terms of a Dec. 20 deal, the German drugmaker agreed to pay $791.5 million to the NIH. The amount comprises $750 million as a settlement for claimed royalties from 2020 to 2023 and $41.5 million in consideration for an amended licensing deal, according to a filing with US Securities and Exchange Commission.

The NIH has agreed to "consider any alleged noncompliance" under the amended licensing deal with BioNTech to be resolved for the period up to Jan. 1, 2024, and to withdraw the default notice previously issued to the drugmaker, the company said.

In a separate SEC filing, BioNTech said it signed a term sheet with the University of Pennsylvania Dec. 23 under which the company, among other things, would pay up to $467 million to the university.

The amount includes $400 million as royalties for 2020 to 2023 and up to $15 million in funding for a three-year extension of the research term of a vaccine alliance between the parties. The remaining $52 million will be contributed to a research and development investment fund to be jointly managed by the company and the university, the filing showed.

The University of Pennsylvania has agreed to dismiss its lawsuit against BioNTech and its former BioNTech RNA Pharmaceuticals unit, and waive any potential claims regarding the royalty dispute, the company said.

Pfizer ( PFE ) has agreed to reimburse BioNTech $364.5 million in connection with the NIH settlement and up to $170 million regarding the University of Pennsylvania case, the filings showed.

The NIH and the University of Pennsylvania didn't respond to MT Newswires' requests for comment, while Pfizer ( PFE ) said in an e-mailed statement that it had "nothing further to provide" beyond the filings.

BioNTech said its agreements with the NIH and the University of Pennsylvania do not constitute an admission of liability in either case.

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